Majority of Middle-Class Americans Struggling Financially Due to High Inflation
- A new survey reveals that nearly two-thirds of middle-class Americans are feeling pessimistic about their finances.
- Middle-class income growth has been lagging behind the upper class since 1970, exacerbated by the current cost-of-living crisis.
- The American middle class is facing financial challenges amidst high inflation, impacting their financial well-being.
Inflation is hitting low-income earners the hardest, as they lack savings to buffer against rising costs. Many Americans struggle to save for the future, with a significant portion unable to plan beyond their next paycheck or have $500 saved for emergencies. Despite a healthy economy with low unemployment rates, inflation remains a concern, with prices rising significantly for necessities like groceries and shelter. Lower-income Americans are disproportionately affected by price hikes, leading to increased reliance on credit cards and dwindling savings. Middle-class and wealthier Americans are also feeling the financial strain, with signs of reduced spending and layoffs impacting consumer confidence. In India, Narendra Modi's victory in the election may face challenges in passing economic reforms, while the UK's upcoming election will be influenced by the state of its economy.